\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 888 Xinjiang Joinworld Co.Ltd(600888) )
Event: on March 28, the company released its 2021 annual report. In 2021, the company achieved a revenue of 8.225 billion yuan, a year-on-year increase of 43.88%; The net profit attributable to the parent company was 853 million yuan, a year-on-year increase of 142.97%; Net profit deducted from non parent company was 930 million yuan, with a year-on-year increase of 192.72%. In 2021q4, the company achieved a revenue of 2.051 billion yuan, a year-on-year increase of 12.47% and a month on month decrease of 5.93%; The net profit attributable to the parent company was 262 million yuan, a year-on-year increase of 137% and a month on month increase of – 2%; Net profit deducted from non parent company was 382 million yuan, with a year-on-year increase of 353% and a month on month increase of 50%.
In 2021, the net profit attributable to the parent company was 853 million yuan, which was mainly due to the increase of sales volume of new energy electrode foil business, the increase of product price and the increase of volume and price. Volume: product output increased year-on-year. The company’s “high-voltage high-performance foil project with an annual output of 15 million square meters” has been gradually put into operation, and the production and sales of high-purity aluminum, electronic aluminum foil and electrode foil products have increased year-on-year. The company’s output of aluminum foil increased by 926300 tons year-on-year; The output of chemical foil was 24.76 million square meters, a year-on-year increase of 32.03%; The alloy output was 85800 tons, with a year-on-year increase of 31.03%. Price and cost: both price and cost increased, and the unit profitability increased slightly. The average price of aluminum in 2021 was 18884 yuan / ton, with a year-on-year increase of 35.01%. The rise of aluminum price has a positive impact on the company’s performance. The company’s business is mostly related to aluminum, and the gross profit margin and profitability of main products have been significantly improved.
In 2021q4, the net profit attributable to the parent company increased year-on-year and decreased month on month due to non operating factors. On a year-on-year basis, the average sales price of the company’s main products increased in 2021. Coupled with the investment income, the net profit attributable to the parent company in 2021q4 increased by 154 million yuan on a year-on-year basis. On a month on month basis, the net profit attributable to the parent company declined, the growth of gross profit still contributed the main increment, and the investment income also contributed 27.38 million yuan. However, the non operating profit reduced the profit of the company by 28.88 million yuan, and the expenses and taxes reduced the profit by 43.02 million yuan, resulting in the decrease of the net profit attributable to the parent company by 6.46 million yuan on a month on month basis.
Comprehensive suppliers of new electronic materials and a complete industrial chain have created profound technical and cost barriers, benefiting from the prosperity and growth of the new energy industry. The company is one of the “top 100 electronic components enterprises in China”, with a production capacity of 180000 tons of high-purity aluminum, 55000 tons of high-purity liquid aluminum, 35000 tons of electronic aluminum foil and 23 million square meters of electrode foil. The circular economy industrial chain of “energy – (primary) high purity aluminum – high purity aluminum / alloy products – electronic aluminum foil – electrode foil” has been formed. In 2021, the growth in the field of new energy boosted the reversal of capacitor demand, and the company’s electrode foil business ushered in a simultaneous rise in volume and price. Among them, the electrode foil used in new energy related fields accounted for 20-30% of the company’s electrode foil sales. We believe that the company is expected to benefit significantly when the downstream boom continues in 2022.
The allotment expansion project benefits from the Addsino Co.Ltd(000547) opportunity of semiconductor and aviation, and the participation in Tianchi energy is expected to increase the investment income. The company’s share allotment project in 2021 will expand the production capacity of 15000 tons of high-purity aluminum, 500 tons of ultra-high-purity aluminum based sputtering target blank (applied to semiconductor chips, flat panel displays, etc.), and 3000 tons of strong and high toughness aluminum alloy large section billet (applied to aerospace field). The high gross profit margin of the expansion project will bring high elasticity to the company’s performance. The company’s participation in Tianchi energy will benefit from the continuous improvement of coal and power generation business, and is expected to usher in greater development space in the future.
Investment suggestion: we expect that the company will realize a net profit attributable to the parent company of 1.098 billion yuan, 1.271 billion yuan and 1.471 billion yuan from 2022 to 2024, with EPS of 0.82 yuan, 0.94 yuan and 1.09 yuan respectively. The PE corresponding to the closing price on March 29 is 9, 8 and 7 times respectively, maintaining the “recommended” rating.
Risk tip: aluminum prices fell, production capacity released, downstream demand did not meet expectations, etc.
